Renzo Protocol, a liquid restaking platform, has introduced a new product called Renzo Basis. This tool automates delta-neutral yield strategies by executing basis trades on the decentralized perpetual futures exchange Hyperliquid.
The service supports trading pairs for Bitcoin and HYPE, the native token of the Hyperliquid exchange. The strategy involves purchasing assets on the spot market while simultaneously opening short positions on perpetual futures to collect funding rate payments.
Renzo automates the management of these positions, including execution, rebalancing, and the collection of funding rates. The protocol previously managed similar strategies using CME futures in collaboration with Superstate.
Hyperliquid was selected as the execution layer due to its high daily trading volumes, which are reported in the hundreds of billions of dollars. This liquidity is intended to minimize slippage during trade execution.
The product carries inherent risks, including the possibility of negative funding rates during market downturns and potential smart contract vulnerabilities. Fee structures and specific risk parameters for the new service have not yet been disclosed.
